$543m Mirdiff Hills project on hold

Dubai Investments Real Estate Company (DIRC) has put its AED2bn ($543m) Mirdiff Hills project on hold due to a lack of mortgage financing, it has been reported.

Investors will be given a 100 percent refund, the head of the real estate arm of Dubai Investments told Emirates Business.

Khaled Kalban, managing director and CEO, Dubai Investments, told the paper: "We have put the Mirdiff Hills project on hold because of a lack of availability of mortgage financing on the project. Investors have got back to us saying they cannot pay up for their units.”

"We have started to repay the investors' down payments in the project. There are many who would have wanted to remain invested and have taken the cheques from us reluctantly," he said.

The mixed-use development comprises 680 apartments, 380 offices and 129 retail units and was due for completion in 2010.

Kalban said the firm would continue with the project if liquidity improved in Dubai.

He added that Dubai’s real estate sector was not showing any immediate signs of recovery, but there were signs of prices stabilising.

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